EA makes "substantial changes" to executive pay after negative shareholder feedback

EA is making “substantial changes” to executive pay after negative shareholder feedback.

In a regulatory filing ahead of a say-on-pay vote set for August, EA said it had “considered stockholder feedback” and made “substantial changes” to executive pay for the 2022 financial year.

Last year’s say-on-pay vote saw 170.89m votes against the company’s plan versus just 59.6m votes for.

While the vote was merely advisory, it signalled discontent among shareholders about the amount and frequency of compensation awarded to CEO Andrew Wilson and EA’s other executives.

Last year, two months before the say-on-pay vote, EA’s board of directors approved a $30m equity award to Wilson for the 2021 fiscal year. That was up from $15m for the 2020 fiscal year.

“The Board of Directors believed that making this larger than normal grant on a one-time basis was in the best interests of stockholders given the heightened competition for top executive talent and the need to continue to retain and motivate Mr. Wilson,” EA said.